Dudley Sees Rate Hike Later This Year

The Federal Reserve will likely raise interest rates later this year if the U.S. economy remains on track, one of the most influential Fed officials said on Wednesday in perhaps the clearest policy signal yet from the central bank.

“If the economy stays on its current trajectory I think … we’ll see an interest rate hike later this year,” New York Fed President William Dudley told a modest dinner gathering at the Lotos Club, downplaying any market-related risks of tightening monetary policy in December.

Dudley, a permanent voter on policy and a close ally of Fed Chair Janet Yellen, added that a quarter-point hike this year “is not really that big a deal” given the economy is “reasonably close” to the Fed’s goals of 2 percent inflation and maximum sustainable employment.

Reuters

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Craig Erlam
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the BBC and The Telegraph, and he also appears regularly as a guest commentator on Bloomberg TV, CNBC, FOX Business and BNN. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.